Stark Law and affiliates Stark Recovery and Capital Harris Miller have reached a settlement with the attorney general of Illinois where the three owners will forfeit $9 million in assets to help pay a $47 million judgment.
The three defendants — Hirsh Mohindra, his brother Gaurav Mohindra and Preetesh Patel — will surrender houses, cash, and even a 1-kilogram gold bar as part of the settlement. They were charged with threatening and coercing individuals to make payments on payday loans that they either did not owe or owed to others, and also selling fake payday loans to other debt buyers. Those threats including possibly pressing criminal charges and filing lawsuits. In some cases, the defendants also purported themselves to represent a law firm. The defendants were also accused of disclosing debts to friends and co-workers of individuals and failing to register as a debt collector in Illinois, a state law requirement.
The settlement was approved last Friday in a federal court. They were originally charged in March 2016 when it was estimated that the scammers took $1 million from Illinois residents alone.
